NLC Calls for Taxation of Tech Giants to Fund Worker Retraining

The Nigeria Labour Congress (NLC) has urged the Federal Government to introduce a special tax on major technology companies operating in the country, with the proceeds directed toward retraining and upskilling Nigerian workers whose jobs are increasingly threatened by automation, artificial intelligence, and digital transformation.

Speaking during a press briefing in Abuja on Thursday, NLC President, Joe Ajaero, said the rapid rise of digital technologies and artificial intelligence across multiple sectors—banking, manufacturing, media, and even public administration—has led to fears of mass job displacement. He emphasized that while innovation and technology drive efficiency, they also pose serious employment risks for millions of Nigerian workers who may soon find their skills obsolete.

Ajaero argued that global tech corporations, including social media platforms, e-commerce firms, and fintech companies, have built vast wealth from digital economies while contributing relatively little to national training or workforce development. “It is only fair that these digital giants contribute a portion of their immense profits to retrain and reskill Nigerian workers who are directly affected by technological disruptions,” he said.

He cited examples from advanced economies where governments have imposed “digital service taxes” or similar levies on tech firms such as Google, Amazon, and Meta, using the funds to support digital education and innovation among the local workforce. “We believe Nigeria should follow this model. The country must not allow foreign and local tech firms to profit immensely from our market while our people are rendered jobless,” Ajaero added.

The NLC leader explained that such a tax should not be seen as anti-business but as a strategic policy tool to ensure inclusive economic growth. According to him, many Nigerian workers, particularly in traditional sectors like banking, education, and manufacturing, are increasingly vulnerable to automation. “Digital transformation must go hand-in-hand with social protection and reskilling. Otherwise, we will face a crisis of joblessness in a few years,” he warned.

Ajaero also noted that many local industries are struggling to retain workers as new technologies reduce the need for human labour. He pointed to ongoing layoffs in financial institutions and media houses as early signs of the broader disruption automation could bring to the economy.

He called on the Federal Ministry of Labour and Employment, the Federal Inland Revenue Service (FIRS), and the National Information Technology Development Agency (NITDA) to collaborate in designing a framework that mandates technology companies to pay a certain percentage of their profits into a National Digital Skills Fund. This fund, he said, should be used exclusively to train workers in digital literacy, data management, and emerging tech fields like artificial intelligence, cybersecurity, and blockchain technology.

“The world is changing fast, and our workforce must not be left behind. We cannot allow Nigeria to become merely a consumer of technology. We must build a digital economy that empowers our people,” Ajaero stated.

The NLC proposal comes amid growing concern over the widening gap between Nigeria’s rapidly expanding tech ecosystem and the traditional workforce. While the digital economy has been credited with boosting GDP and creating new business opportunities, labour unions have consistently raised concerns about inequality and job losses.

Labour experts have also backed the NLC’s position, arguing that taxing digital companies could help fund skills development initiatives critical to Nigeria’s economic transformation. Dr. Femi Oloyede, a labour economist at the University of Lagos, noted that automation and artificial intelligence will continue to disrupt industries. “If Nigeria does not act quickly to reskill its labour force, millions could be left unemployed in the next decade. The NLC’s call for a tech tax is a proactive move that aligns with global trends,” he said.

Oloyede further explained that countries like France, the UK, and India have already introduced digital taxes to capture revenue from global tech firms that earn substantial income from local markets but pay minimal taxes. “Nigeria should adapt this strategy to its own context—ensuring both fairness and sustainability,” he added.

However, some stakeholders in the technology sector have expressed reservations, warning that excessive taxation could discourage investment and innovation. The Association of Licensed Telecommunications Operators of Nigeria (ALTON), for instance, has previously argued that multiple taxes remain one of the biggest burdens facing tech and telecom companies.

Reacting to the NLC’s suggestion, a senior executive at one of Nigeria’s leading fintech companies (who requested anonymity) said that while the idea of retraining workers is commendable, any proposed levy must be transparent and efficiently managed. “We support upskilling initiatives, but we need assurance that the funds will be used effectively. If poorly implemented, such a tax could slow innovation and increase the cost of doing business,” the executive said.

In response, Ajaero maintained that the NLC is not advocating for policies that would stifle innovation but rather those that balance progress with social responsibility. “Technology must serve humanity, not displace it. We must ensure that every Nigerian worker has a place in the future of work,” he insisted.

He added that the NLC will soon engage with lawmakers at the National Assembly to propose a bill establishing the Digital Skills Fund, which would receive statutory allocations from both government and private sector contributions. “This is not a one-off demand. We are taking it to the policymakers to ensure legal backing for sustainable implementation,” he said.

The NLC president concluded by urging the Federal Government to treat the matter as a national priority, stressing that digital inclusion and human capital development are central to the administration’s economic renewal agenda. “We can no longer ignore the reality that the future of work is digital. If we don’t prepare our workforce today, the social cost tomorrow will be far greater,” Ajaero warned.

As Nigeria pushes toward a tech-driven economy, the NLC’s call underscores a growing recognition that the benefits of innovation must be shared broadly — ensuring that technological progress empowers, rather than marginalises, the country’s workforce. (750 words)